New research reveals a lasting mental health crisis in today’s workforce. Nearly half of employees say life was easier during the pandemic than now. Here’s why—and what employers must do to reverse the decline.
The COVID-19 pandemic reshaped work, life, and well-being in ways few could have predicted. At the time, workplaces quickly adapted—offering expanded mental health benefits, embracing remote flexibility, and making well-being a business priority.
But five years later, employees aren’t looking back with relief—they’re looking back with a sense of loss.
New research from Modern Health reveals a sobering reality:
These findings signal a major disconnect between how organizations perceive workplace mental health and how employees actually experience it.
“The pandemic forced workplaces to acknowledge mental health in a way they never had before. But instead of building on that momentum, many organizations have pulled back, assuming the crisis has passed. What they’re missing is that for employees, the crisis never truly ended.”
– Dr. Mary Odafe, Clinical Psychologist, Clinical and Scientific Affairs Liaison, Modern Health
At first glance, it may seem counterintuitive—how could employees say life was easier in 2020 than in 2025?
But when we unpack the data, the reasons become clear:
But five years later, much of that progress is at risk of backsliding. Instead of feeling supported, employees now feel like they’ve been left to navigate post-pandemic stress on their own.
For many employees—especially Gen Z and younger millennials—the pandemic wasn’t just a disruptive event. It was a defining one.
The long-term mental health impact of COVID-19 has been well documented. According to a WHO report, the pandemic triggered a 25% increase in the prevalence of anxiety and depression worldwide.
And yet, as workplaces attempt to “move on” from COVID-19, many are failing to address the ongoing stress, burnout, and disillusionment employees are still carrying.
For employees, the pandemic may have ended—but the stress hasn’t.
The data is clear: Employees are looking to their workplaces for mental health support not just because of job-related stress but because the world feels increasingly unstable.
Rather than dismissing post-pandemic exhaustion and uncertainty as “personal issues,” employers need to acknowledge their role in supporting a workforce that feels more drained and disillusioned than ever before.
This isn’t just about offering more benefits—it’s about rebuilding trust, psychological safety, and a culture where employees feel valued and supported.
The pandemic was supposed to be a turning point for workplace mental health. Instead, employees feel as if their well-being has taken a backseat to business priorities.
For forward-thinking organizations, this presents both a challenge and an opportunity. Companies that listen to this reality and take action will not only support their employees but also future-proof their workforce in an era where resilience is everything.
Now is the time to act. Because in 2025, the most successful workplaces won’t be the ones that “move on” from mental health—they’ll be the ones that double down on it.
Here are four places organizations can start:
Explore more key findings from Modern Health’s latest research on employee sentiments regarding mental health in the workplace—and discover what forward-thinking employers are doing to support a workforce that’s still reeling from years of stress, burnout, and uncertainty.
Modern Health is the comprehensive mental wellness platform that combines the WHO well-being assessment, self-service wellness kits, an international network of certified coaches, and licensed therapists available in 80+ languages all in a single app. Modern Health empowers employers to lead the charge in acknowledging that mental health is just as important as physical health, de-stigmatizing the conversation, and increasing accessibility of mental health services for all.